Note—Can a Reduction in Set Up Costs Indeed Increase Total Costs?

Increase Safety, Reduce Costs

Multi-item lot-sizing with joint set-up costs

We consider a multi-item lot-sizing problem with joint set-up costs and constant capacities. Apart from the usual per unit production and storage costs for each item, a set-up cost is incurred for each batch of production, where a batch consists of up toC units of anymix of the items. In addition, an upper bound on the number of batches may be imposed. Under widely applicable conditions on the ...

Stochastic scheduling of parallel queues with set-up costs

We consider the problem of allocating a single server to a system of queues with Poisson arrivals. Each queue represents a class of jobs and possesses a holding cost rate, general service distribution, and a set-up cost. The objective is to minimize the expected cost due to the waiting of jobs and the switching of the server. A set-up cost is required to effect an instantaneous switch from one ...

Quality Costs in Clinical Laboratory

Introduction: The concept quality cost for all clinical laboratories perform routine and specialized tests of any size and scope has many applications. Familiarity of managers and employees of clinical laboratories with quality cost concept prevent wasted resources and offers laboratory services with high quality to physicians, patients, and other internal and external customers with reasonable...

Stability Control in a Supply Chain: Total Costs and Bullwhip Effect Reduction

The bullwhip effect refers to the phenomenon of demand distortion in a supply chain. By eliminating or controlling this effect, it is possible to increase product profitability. The main focus of this work is to apply a control technique, based on the divergence of system, to reduce the bullwhip effect in a single-product one echelon supply chain, in which an Order-Up-To (OUT) order policy is a...